The Mumbai Bench of Income Tax Appellate Tribunal(ITAT)dismissed the revenue’s appeal since the tax effect, as shown in Form-36, was zero and fell below the ₹60,00,000 limit set by the Central Board of Direct Taxes(CBDT) circular.
The Revenue-appellant filed an appeal against the order passed by the Commissioner of Income-tax (Appeals)/National Faceless Appeal Centre (NFAC) under section 250 of the Income Tax Act, 1961 for the Assessment Year (A.Y.) 2017-18, dated 23.09.2024, in the case of Gajadharprasad Nathai Pal, respondent-assessee, wherein partial relief was granted to the assessee.
The two member bench comprising Sunil Kumar Singh(Judicial Member) and Narendra Kumar Billaiya(Accountant Member) noted that the total disputed amount in the revenue’s appeal was Rs. 79,92,500/-, with a tax effect of zero as shown in Form-36.
Read More: ITAT Dismisses Revenue’s Appeal as Tax Effect Falls Below Rs. 60 Lakhs, in Accordance with CBDT
Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here
Form 36 is used to file an appeal before the ITAT under Section 253 of the Act.It is required when a taxpayer or the tax department challenges an order passed by the Commissioner of Income Tax (Appeals) [CIT(A)] or other specified authorities. The appeal must be filed within 60 days from the date of receipt of the order.
A properly filled Form 36 must include the grounds of appeal, statement of facts, a copy of the order being challenged, and the prescribed appeal fee. The fee depends on the assessed total income.
Read More: Tax Effect below Threshold Limit: ITAT dismisses Revenue’s Appeal
Since this was below the Rs. 60,00,000/- limit set by the CBDT circular and the Department Representative failed to show any applicable exceptions, the appeal was dismissed as infructuous. However, the revenue could seek reopening if it could establish that the appeal fell under any exceptions in the CBDT circular.
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